Banks have written to Reserve bank of India stating they are not in favour of a deregulated savings rates regime and such a move would hurt everybody in the system. It is the view of our members that it is not an appropriate time to deregulate the savings rate because of the upward bias in the interest rates currently and the general high rate scenario, Indian Banks Association (IBA) chief executive K Ramakrishnan said. Reserve bank of Indias recent moves to calculate interest rate on a daily basis and increase the interest rate on savings accounts to 4% is already hurting banks, he said, adding that Indian Banks Association recently wrote to Reserve bank of India about its reservations. - www.economictimes.indiatimes.com
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